Mortgage lending surges again despite housing market wobble
MORTGAGE lending hit its highest level in six years in July, industry data showed yesterday, dampening worries that the housing market was slowing down.
Banks and building societies gave out £19.1bn in home loans last month, up 15 per cent compared with July 2013.
That figure is seven per cent higher than the level just one month earlier, and makes July the biggest month for mortgages since August 2008.
The market had slowed down with the introduction of tougher, new affordability rules in April, but has bounced back again over the summer.
“Mortgage activity seems to have remained robust following the regulatory changes but the eventual impact of these remains uncertain,” said Caroline Offord from the Council of Mortgage Lenders, who published yesterday’s data.
“Property transactions in the first half of the year showed a 25 per cent increase compared to the same period a year ago, but we expect that intensifying affordability pressures could start to dampen this upwards trend.”